Published : August 14, 2023As businesses become more fragmented, different teams or customers may not even be in the same country. Yet, some office workers are still stuck with traditional phone systems to receive client calls and perform day-to-day business functions.
What are they missing out on by not shifting to cloud calling? Well, to begin with, significant cost savings, advanced features such as call monitoring tools and virtual assistant, and hyper flexibility to work from anywhere.
The cloud telephony market is growing at 9.7% CAGR over the past few years and is expected to cross to be around the value of $57 billion in 2023.
This blog delves deeper into the workings, benefits, and drawbacks of using cloud based calling. We also discuss how cloud calling differs from VoIP and leave you with the top 7 cloud calling providers to choose from.
What is Cloud Calling?
Cloud telephony or cloud calling falls under unified communications as a service (UCaaS) and enables voice communication services through a third-party host. This eliminates the need for traditional enterprise telephone systems like private branch exchange (PBX).
Cloud telephony is hosted on the cloud, and your provider remains responsible for maintenance. Its meaning might differ from provider to provider, but the services offered remain the same: making phone calls over the Internet.
Cloud communication providers offer standardized telephony platforms on their servers, allowing customers to access them remotely via the Internet on a subscription or on-demand basis. This approach enables organizations to move away from costly, time-consuming, on-premises telephone systems, such as PBX.
"We advise businesses to carefully assess their communication needs and choose a cloud calling provider that aligns with their contact center requirements and budget. Prioritize security and data privacy when selecting a service, and consider opting for a provider that offers excellent customer support to ensure a smooth implementation and operation of the cloud calling system."
How Does Cloud Calling Work?
Cloud calling relies on Voice over Internet Protocol (VoIP) to connect customers, teams, and stakeholders using the Internet. It converts analog voice signals into digital data packets and transmits them over the Internet. This means, on initiating a phone call using a VoIP desk phone in cloud calling, your VoIP service provider handles the call routing.
With the technology of cloud calling, traditional phones are replaced with VoIP desk phones connected to the existing network, eliminating the need for landlines.
Cloud calling allows you to make calls from any internet-connected computer or mobile device, liberating your business from the expenses and maintenance of standalone hardware like traditional PBX boxes and handsets. This approach streamlines communication and reduces costs while offering greater flexibility and accessibility. And, with companies ending their support for PBX systems, there is no better time to implement cloud calling.
What are the Benefits of Cloud Calling?
The shift to cloud calling ushers several advantages that most cloud telephony service providers will bring. Here are a few to show you the full potential of cloud calling software.
1. Flexibility
Cloud calling allows you to make and receive calls from anywhere, anytime via the Internet. It makes it easier for you to work from home or anywhere you feel productive.
2. Optimization
Cloud calling prevents the hassle of organizations managing their own telephony infrastructure. Third-party providers take care of everything from setting up and maintaining the system to troubleshooting problems and applying security updates.
3. Scalability
You can add or change employee telephone numbers on demand on a self-service portal. It helps streamline the onboarding and offboarding process for on-site and remote workers, saving time and resources for organizations.
4. Cost-effectiveness
Cloud calling is a more economical option than traditional, on-premises systems. Mostly because cloud calling providers offer subscription and pay-per-use models that encourage resource pooling. It means that organizations are able to reduce their infrastructure overhead costs by offloading hosting and management responsibilities to the VoIP provider.
5. Access to advanced calling features
Cloud telephony will equip your business with features that will skyrocket your efficiency. Some of such advanced features include call monitoring, call recording, smart call forwarding, call routing, call analytics, auto attendants, IVR, and more.
You May Also Read : All You Need to Know About Cloud Phone Numbers
Drawbacks of Cloud Calling
Naturally, cloud calling also comes with drawbacks that you need to be aware of before you decide to implement it for your organization.
1. Security concerns
Some experts warn that cloud telephony platforms may not be able to meet the security requirements of organizations that deal with highly sensitive data. Since cloud calling is hosted on servers by third parties, it poses significant data breaches and brute-force hacking risks. That is one of the major reasons why you must choose a provider that prioritizes security.
2. Initial hardware cost
If your infrastructure consists of archaic routers, the cost of setting up a cloud-calling system increases exponentially. Additionally, if a company already has a traditional phone infrastructure, converting it to a cloud-enabled system or purchasing new VoIP phones could incur additional expenses. However, the cost it saves in the long run and the ROI it offers easily make it a wise choice.
3. Increased dependence on the Internet
Cloud phone systems rely on the internet to function, which means that a reliable internet signal is crucial for their success. However, a cloud phone service doesn’t require massive bandwidth—it works well with a 100 kbps upload speed. You can also utilize the advanced call forwarding feature to direct calls to your mobile.
Cloud Calling vs. VoIP
Often individuals use cloud calling and VoIP interchangeably, but that’s far from the truth. Let’s go through the major differences between the two to help you make a wiser choice:
| Basis | Cloud Calling | VoIP |
| Data storage | Cloud calling system stores your data on the cloud so you never lose it, even in calamities. | VoIP stores your data in internal data centers, however there is a risk of losing it in calamities. |
| Hardware | Cloud calling requires no additional hardware other than phones, as it relies on cloud-based servers. | VoIP sometimes requires physical hardware to be used at the office premise. |
| Maintenance | Cloud calling infrastructure is hosted and maintained by the provider you choose, minimizing downtime. | On-site hosted VoIPs must be maintained by you, increasing repair and maintenance costs. |
| Cost | Cloud calling setup and management costs are minimal. | VoIP is costlier as compared to cloud calling. |
| Scalability | Cloud calling systems are extremely scalable; adding new users is easy and straightforward. | VoIP has limited scalability as the hardware has device addition limitations. |
| Flexibility | Cloud calling offers high flexibility, allowing you to call via your mobile. | VoIP limits your flexibility by restricting you to the office premise devices connected to the hardware. |
| Security | Cloud calling is highly secure with encryption and authentication measures. | VoIP might have some security concerns without robust setup and configuration. |
7 Best Cloud Calling System Providers
| Company | Rating | Plan | Top Features | Learn More |
|---|---|---|---|---|
 | Starter: $18/month Professional: $30 /month Ultimate: $42 /month |
| Learn More | |
 | Core: $20 Advance: $25 Ultra: $35 |
| Learn More | |
 | Starter: $10 Standard: $20 Premier: $30 |
| Learn More | |
 | Essentials: $18.95 Professional: $22.95 Enterprise:: $32.95 |
| Learn More | |
 | X2: $24 X4: $44 |
| Learn More | |
 | Mobile:$14.99 Premium: $24.99 Advanced:$34.99 |
| Learn More |
Different cloud telephony providers will offer different cloud services at different price points. Furthermore, they all have their innate drawbacks. Hence, it is important to compare and select the one that fulfills all your contact center needs without breaking the bank.
1. CallHippo
CallHippo is one the most equipped virtual phone systems on the list. It empowers businesses to establish a strong communication team with a robust backend and cloud telephony services better than any other cloud service providers. It also allows you to use local phone numbers from 50+ countries.
Features
- Call recording
- Smart call re-routing
- Call barging
- Interactive voice response
CallHippo Pros and Cons
- It offers local and international virtual phone numbers to increase the reach of your business and build a solid presence.
- Calling targets are easy to set, measure, and analyze with CallHippo.
- This business phone system also provides summaries and insights to help better prepare your upcoming strategies.
- Its application might crash sometimes.
- The initial integration process takes time if the organization transitions from legacy hardware. (Common with all providers).
Pricing
- Basic: Free version
- Bronze: $16/user/month
- Silver: $24/user/month
- Platinum: $40/user/month
*Pricing as of 11-06-2024.
2. Google Voice
Google Voice is the cloud-calling branch of the famed search-engine company. Like all other Google products, it offers incredible security features, interface, infrastructure, and user experiences. It lets Workspace subscribers make free calls in the US and Canada using the app.
Features
- Personalized voice greetings
- Multi-level auto attendant
- Call Blocking
- Easy integration with existing Google apps.
Google Voice Pros and Cons
- Google Voice can be set up in a few minutes.
- The app provides 24*7 customer support and resolves customer queries promptly.
- Workflow customizations make the app highly flexible.
- Innovation and introduction of new features have stalled after its initial release
- It does not integrate well with existing CRM and ERP solutions.
Pricing
- Business Starter: $10/user/month
- Business Standard: $20/user/month
- Business Plus: $30/user/month
You May Also Read : Top 14 Cloud Hosted PBX Providers For Businesses In 2023
3. 8X8
8×8 is one of the most versatile cloud solutions that offer a comprehensive virtual phone system. Its robust communication and collaboration tools empower businesses to enhance communication effortlessly. With access to local phone numbers from various countries, 8×8 expands the reach of your organization’s presence globally.
Features
- Contact management
- Call recording
- Call analytics
- Unified inbox
8X8 Pros and Cons
- With 8x8, you’ll have reliable and crystal-clear voice calls.
- This cloud calling provider offers friction-free integration with top business apps.
- The app provides cloud calling solutions for businesses of all sizes.
- Some of its advanced features may require additional costs.
- Its price plans might be relatively higher for small businesses.
Pricing
- X2: $24/user/month
- X4: $44/user/month
4. RingCentral
RingCentral is a leading cloud calling solution provider that powers businesses to streamline their communication. Its unified platform offers a range of communication tools that integrate voice, video, messaging, and more into a single system.
Features
- Video conferencing with screen sharing
- Business SMS and team messaging
- Auto-attendant and call management
- Integrations with CRM and productivity tools
Ringcentral Pros and Cons
- RingCentral offers reliable service with high call quality.
- It is known for its user-friendly interface and is easy to set up.
- This cloud calling solution provides extensive integrations and API support.
- Its advanced features are available in higher-tier plans.
- Some users have reported occasional app glitches.
Pricing
- Core: $20/user/month
- Advanced: $25/user/month
- Ultra: $35/user/month
5. Nextiva
Nextiva is a user-friendly cloud calling service provider that caters to businesses seeking a powerful unified communications solution. Its intuitive platform offers a range of features like instant messaging and web conferencing designed to optimize team collaboration and customer interactions.
Features
- CRM integration
- Call queuing and routing
- Mobile app for remote work
- Call analytics and reporting
Nextiva Pros and Cons
- Nextiva is known for excellent customer service and support.
- It is highly rated for its ease of setup.
- The provider offers reliable call performance.
- Nextiva’s international calling rates may be higher.
- It offers limited customization options compared to some competitors.
Pricing
- Essential: $18.95/user/month
- Professional: $22.95/user/month
- Enterprise: $32.95/user/month
6. Vonage
Vonage is a reputable cloud calling service provider known for its feature-rich unified communications solutions. It caters to both small businesses and enterprises, offering a variety of tools to improve connectivity and productivity.
Features
- Virtual receptionist (auto-attendant)
- Voicemail transcription
- Call monitoring and recording
- Team messaging and file sharing
Vonage Pros and Cons
- Vonage’s dashboards are clean and customizable.
- It facilitates secure communications while abiding by regulatory compliances.
- It offers easy integration with popular business tools.
- Vonage’s hidden charges increase the overall cost of the subscriptions.
- Its customer service needs improvement.
Pricing
- Mobile: $19.99/user/month
- Premium: $29.99/user/month
- Advanced: $39.99/user/month
7. MagicJack
MagicJack is one of the more affordable cloud calling options with a plug-and-play integration system. In other words, you can directly connect your hardware to your system and launch the application within a few hours.
Features
- Unlimited calling to the United States and Canada
- Voicemail service
- Call forwarding
- Mobile app for on-the-go calling
MagicJack Pros and Cons
- MagicJack’s offers affordable plans with unlimited calling options.
- It is easy to set up and use and provides cross-platform support.
- It is best suited for businesses with basic calling needs.
- It offers limited international calling options
- MagicJack doesn’t offer the same features and support as more robust business-oriented services.
Pricing
$15.99/month/line
8. Dialpad
Dialpad is a cloud-based communication platform that unifies voice, video, messaging, and meetings into a single platform. It is designed for ease of use and integrates well with other business tools. Besides, its AI features transcribe calls and analyze customer sentiment in real time, allowing sales reps to personalize their messaging instantly.
Features
- Unlimited calling
- Unlimited AI Meetings for up to 10 participants
- SMS, MMS & team messaging
- AI-powered call & voicemail transcriptions
Dialpad Pros and Cons
- It offers AI-powered real-time sentiment analysis to help personalize customer interactions.
- Dialpad provides unlimited AI meetings for up to 10 participants.
- It includes AI-driven call and voicemail transcriptions.
- You might face occasional audio quality issues, especially if the internet is slow.
- The reporting module can be unintuitive and difficult to use.
Pricing
- Standard: $27/user/month
- Pro: $35/user/month
9. Cisco Webex
Cisco Webex is a robust cloud-based collaboration platform designed to enhance communication and productivity for businesses of all sizes. It offers a unified experience combining calling, meetings, messaging, and devices into a single platform. Besides, its advanced noise cancellation ensures callers get a seamless experience at all times.
Features
- Unlimited domestic calling
- Auto attendant
- Extensions
- AI assistant
Cisco Webex Pros and Cons
- Webex offers a personal meeting room address for quick, unscheduled meetings.
- It provides AI-generated meeting summaries and transcripts in multiple languages.
- It integrates well with other Cisco hardware and software.
- The mobile app can sometimes have issues with logins or notifications.
- Setting up more advanced features may require IT support.
Pricing
- Webex Call: $183.6/user/year
- Webex Suite: 270/user/year
10. Talkdesk
Talkdesk is a cloud-based contact center software that offers scalable solutions for customer support and sales teams. It provides omnichannel support and leverages AI to enhance customer interactions. You can also automate customer self-service and understand customer pain points through generative AI-powered analysis.
Features
- IVR and call routing
- Real-time dashboards
- Business intelligence
- Automation
Talkdesk Pros and Cons
- It offers a sandbox environment for safely testing new configurations.
- It provides extensive API access for custom integrations and workflows.
- Talkdesk features a user-friendly interface for building custom reports.
- The live reporting option can sometimes update with a delay.
- It has a steeper learning curve for teams new to advanced contact center software.
Pricing
- CX Cloud Essentials: $85/user/month
- CX Cloud Elevate: $115/user/month
- CX Cloud Elite: $145/user/month
How to Choose the Right Cloud Computing Solution?
We understand how challenging it is to select the right provider. You must consider a few factors before committing to a service provider.
1. Cost
You need to consider the pricing models of all the plans and choose the one that satisfies all your requirements at the lowest cost.
2. Customer support
You may have questions or queries about the system that require quick resolution. A handy customer support team will ensure you get the proper guidance throughout.
3. Positive reviews
Do your research and compare the products before getting one for yourself. Use websites like G2, SoftwareSuggest, and TrustingRadius to gather user feedback.
4. Security
As mentioned earlier, lax security measures are a point of contention for most customers. Hence, discuss the security features and data privacy laws with your providers to better understand their offerings.
5. Multiple integrations
Choose platforms with native integration capabilities with your existing business and CRM systems. It will make it easier to set up the system and get going.
You May Also Read : Cloud-based vs. Traditional Telephony System
Wrapping Up
Cloud calling offers a digital transformation to businesses seeking efficient and flexible communication. Harnessing the power of VoIP plus cloud calling and choosing the right provider allows organizations to streamline their operations, improve collaboration, leverage the benefits of digital transformation, and enhance customer interactions.
Remember, a cloud-calling system will work for you only if you choose the one that fits your business requirements. Refer to our buyer’s guide to make a wise choice instantly. To save your research time, you can choose a widely trusted cloud calling provider like CallHippo and get started with cloud calling today!
FAQs
1. Can you make phone calls on the cloud?
Yes, you can make phone calls on the cloud through the internet using the VoIP system.
2. What is WebEx cloud calling?
Yes, WebEx is a cloud-based phone system better known for its video conferencing capabilities.
3. What is the difference between VoIP and cloud?
VoIP is a technology that enables voice communication over the Internet, while the cloud refers to the delivery of various services, including VoIP, through remote servers over the Internet.
4. Are cloud phones safe?
Yes, most cloud phones are safe. However, data security features and privacy levels vary from provider to provider.
5. Is Cloud Telephony the Same as VoIP?
Cloud telephone uses VoIP tech to make calls over the internet. In other words, all cloud calling organizations use VoIP, but not all VoIP calls are made using cloud calling.
Updated : August 26, 2024
Supriya Bajaj is a senior content developer with immense experience in the VoIP telephony domain. With a deep knowledge of VoIP systems and emerging technologies in the field, she provides insightful and targeted content. Known for simplifying complex topics and her thought-leadership articles, Supriya delivers actionable content for both technical and non-technical audiences.
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